AngloGold may well put upward pressure on the Uranium Spot Price...

AngloGold may well put upward pressure on the Uranium Spot Price going forward.

Here's The article that may be behind the recent rise on the Uranium Index over the past 3 weeks.
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AngloGold may amend uranium contracts, citing power supplies.
Tues.May 20 2008 : Article apparently 2 Hours old.

AngloGold Ashanti Ltd, Africa`s biggest uranium and gold producer, said it is rescheduling some of its uranium sales contracts because unreliable electricity supplies in South Africa may hamper output.

Power supplies in South Africa were cut for almost a week in January amid a nationwide power shortage, reducing production from some of the world`s largest precious-metal mines, including those where uranium is extracted as a byproduct. Since restoring power, the state-owned utility has limited the amount of electricity industrial customers may use and has warned that shortages will persist until about 2012.

"Given the uncertainty relating to availability of power and the impact power constraints may have on uranium production, the company is in negotiations to reschedule some of its uranium contracts," Johannesburg-based AngloGold said in a regulatory filing. The company, "depending on the outcome of these negotiations, may have to buy uranium on the open market to fulfill its contractual obligations".

An increase in global uranium output pushed prices of the metal used in nuclear-reactor fuel to a 16-month low of US$65/lb, according to an April 18 report by Denver-based pricing service TradeTech LLC. Uranium traded at a record US$138/lb in June last year.

AngloGold bought 400,000lb of uranium last year at a cost of US$31 million to fulfill its contractual obligations after production was lower than planned, according to the regulatory filing. Prices for the metal are expected to remain "robust" for several years as new nuclear reactors are built and may increase sharply if supplies are disrupted, AngloGold said.

The power supply to its mines in South Africa is currently 96.5% of its needs in February, the company said.
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Cheers to the U-Bulls from grant64 :)
Pressure is indeed mounting on the Uranium Spot Price Going forward.
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